Kaye Scholer Settles GSC Ethics Row For $1.5M

By Helen Christophi

Law360, Los Angeles (February 15, 2013, 10:38 PM ET) -- Kaye Scholer LLP on Friday reached a $1.5 million settlement with the U.S. trustee's office, which had sought to oust it from GSC Group Inc.'s Chapter 11 bankruptcy case for alleged ethical violations and false statements to the court.

U.S. Trustee Tracy Hope Davis asked the U.S. Bankruptcy Court for the Southern District of New York to approve the settlement Friday, saying the law firm will also review and revise its internal policies on court-approved retention applications in bankruptcy cases and hire an independent auditor to...